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What Is The Right Age For Your Kid To Have A Saving Bank Account?

Looking at the lifestyle of kids these days, banks have come up with a unique saving bank accounts especially designed for minors. The idea to introduce this kind of account came with the fact that now kids get more cash in the form of pocket money and gift than what we used to get when we were kids. Unlike previous times, piggy banks are now not enough and safe to hold the savings of kids. In India, almost all banks have the facility where you can open a minor’s saving account if you have a saving account with the bank.

Since these accounts are especially designed for kids, banks offer some special features to parents to have control on the spendings of their kids. Features offered by banks to minor accounts are:-

  • Zero Balance Account :- Depending on your bank, you can either have a zero balance minor saving account or you may be required to maintain a small sum of money as minimum balance.
  • High Interest Rates :- Most banks offers higher interest rates on minor’s saving account.
  • Independent or Joint Account :- A child below the age of 10 years can have his saving bank account jointly with his parents or under guardianship, but for the age group of 10 to 18 years one can have an independent saving account.
  • Recurring Deposit :- Using this facility your kid can save a specific sum of money every month and can choose the date of maturity for his deposits depending on his need.
  • Debit Card :- Some banks also offers debit cards to kids above the age of 12 years (Most banks offer debit card to minor account only after permission from parents/guardian’s) .
  • Cheque Book :- Some banks also offers cheque book to kids who can sign uniformly.
  • Internet banking :- Some banks also offer net banking on minor’s saving account to allow kids to monitor there account online.

Advantages Of Minor’s Saving Account

For Kids

Having account in bank help your kid learn a lot and let them :-

  • Handle there cash properly
  • Understand the different basic activities of banking.
  • Use there debit card for making payments (avoid keeping cash)

For Parents

  • Can make them learn the importance of savings at early age
  • Can control there spending’s by placing a limit on there bank or ATM withdrawal.
  • Can monitor there account using net banking or SMS facility offered by banks.

For Banks

  • New Customers

List Of Indian Banks Offering Special Saving Bank Account For Kids

Bank

Account Name

Minimum Average Balance

Daily Withdrawal Limit

Andhra Bank Kiddy bank account Rs 100 Rs 1500
ICICI Bank Ltd’s Young Stars Account Rs. 2,500 Rs 5000
ING Vysya Bank’s ING Zing Savings Account Rs. 2,500 Rs 5000
Axis Bank Ltd Zero Balance Minor Account Zero Rs 1500
Citi Bank Citibank Junior Account Rs 5000 Rs 75000
HDFC Kid Advantage Account Rs 5000 Rs 2500
Karur Vysya Bank Jumbo Kids Saving Account Zero

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